Real estate is widely recognized as one of the most effective ways to earn money in today’s economy. There are multiple ways to make a profit through real estate. You can use real estate as a passive investment, and there are numerous professions that can provide you with a steady and generous income related to real estate.
Here are some of the ways you can generate active or passive income from the industry. From entrepreneurs to stay-at-home parents, just about anyone can earn money through real estate with the right strategy and a commitment.
1) Investment Properties
Investment properties that generate rental income are an ongoing source of money that can ultimately be sold when the time is right. Rental properties can be expensive to buy or build, but they pay off in several ways:
- Rental Income – it doesn’t have to be a multi-unit rental income to provide ongoing rent. You can rent out a single-family home before selling to help pay for insurance and maintenance costs.
- Buying low & selling high – While real estate goes through ups and downs, the limited supply of land in urban and suburban centres means property values generally go up. In fact, home prices have grown twice as fast as wages. You can earn more money from owning property than your job.
One of the reasons investment properties are so popular is that if you make a 20% down-payment on the mortgage, but you collect 100% of the rent, you can calculate your returns after the mortgage payment and wind up with a steady, consistent income.
2) Flipping Houses
Another way you can earn money is by flipping houses. This is a process in which you buy a fixer-upper at a discount price, invest some money into renovating it, and sell it at a profit. It can work great with rundown houses in up-and-coming neighborhoods, but there’s a risk involved in sinking your own money into a property.
3) Helping Homebuyers and Sellers
There are many things you can do as a real estate agent, but one of the most common ways real estate agents earn a living is helping homebuyers and home sellers. It’s the bread-and-butter of real estate agents, and depending on the houses can generate generous commission checks.
Becoming a real estate agent is a great investment in your career. You can earn your real estate license online. The costs and time commitment are minimal, and with online real estate schools, you can sign up for real estate courses online in your state.
The online real estate courses can be completed on a schedule that works with your life and responsibilities. Anyone interested in learning more about their real estate license should be sure to read this introduction to the top 5 reasons why you should and how you can start.
Real estate is an investment worth making and one that should catch your interest. Find out more about investing in real estate and why you should earn your real estate license.